Makes real property tax deferments available to senior citizens; provides for liens and funding thereof

BILL NUMBER:A7824A

Title of bill

An act to amend the real property tax law, the local finance law and the insurance law, in relation to granting tax defer- ments to senior citizens in certain cases

Purpose or general idea of bill

It would allow an owner of a residen- tial property of a 1 or 2 family home or co-op or condominium that is the prime residence of the owner who is 65 years old and has less than $5,000 earned income or $25,000 gross income to defer all property taxes.

Summary of specific provisions

The deferred taxes would be taken as a lien on the property, and on transfer of title or the fact that the owner is no longer a prime or actual resident 85% of the year the muni- cipality would collect the back taxes plus interest that would be calcu- lated year to year at Moody's Average for commercial prime rate loans. The maximum lien to be no more than 80% of the actual market value of the property. Amends the real property tax law, the local finance law and the insurance law in relation to tax deferments.

Justification

Many senior citizens who purchased homes find that with the increased value of their homes from year to year that their taxes are also increased. This has caused some seniors to have to sell their homes simply because they could not afford the taxes, even though the home is owned outright. This would allow the seniors to stay in their home with the tax deferment.

Prior legislative history

2007-2008 Session A-3983 (formerly Assembly- man Lafayette's bill). Assembly - 01/09/08- referred to aging Senate 01/09/08 - referred to aging

Fiscal implications

To be determined.

Effective date

This act shall take effect on the one hundred eightieth day after it shall have become a law.